Texas has no state income tax, a policy constitutionally protected since 2019 (Texas Constitution Art. VIII, Sec. 24-a: the legislature may not tax the net incomes of individuals). Changing that would require a constitutional amendment, making it highly unlikely to change.
Why no income tax? Texas relies on other revenue sources including property tax (1.40% average owner-occupied effective rate, though the rate a landlord actually pays on a rental property is notably higher at ~2.5% once the state's large homestead exemption is excluded), sales tax (6.25% state + up to 2% local), oil and gas severance taxes, and business franchise taxes. This "Texas Model" attracts businesses and high-income individuals fleeing high-tax states.
How it compares:
Recent changes: In November 2019, Texas voters approved a constitutional amendment (now Art. VIII, Sec. 24-a) barring a tax on individuals' net incomes. Property tax reform remains a hot topic, with efforts to cap annual increases.
Source: Texas Comptroller of Public Accounts - Tax Information
Here's what Texas residents actually pay at different income levels (2026, single filer, standard deduction):
| Annual Income | Federal Tax | State Tax | Total Tax | Take-Home Pay | Effective Rate |
|---|---|---|---|---|---|
| $50,000 | $3,820 | $0 | $3,820 | $46,180 | 7.6% |
| $75,000 | $7,670 | $0 | $7,670 | $67,330 | 10.2% |
| $100,000 | $13,170 | $0 | $13,170 | $86,830 | 13.2% |
| $150,000 | $24,734 | $0 | $24,734 | $125,266 | 16.5% |
| $250,000 | $51,304 | $0 | $51,304 | $198,696 | 20.5% |
Note: Includes federal and state income tax only. Does not include FICA (Social Security/Medicare), which adds 7.65% for employees.
Key takeaway: At $100K, Texas takes $0 in state tax alone.
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Migration Trends: According to U.S. Census Bureau data (2021-2022), Texas experienced net immigration of 230,961 residents, making it the #1 destination state. Top origin states were:
Why people move to Texas:
Why people leave or avoid Texas:
Tax considerations if moving here:
| State | Tax Rate | Tax on $100K Income | Difference from Texas |
|---|---|---|---|
| Texas | 0% | $0 | Baseline |
| Louisiana | 3% flat | $2,614 | +$2,614 (more tax) |
| Oklahoma | 0-4.5% | $3,955 | +$3,955 (more tax) |
| New Mexico | 1.5-5.9% | $3,569 | +$3,569 (more tax) |
Key insight: Texas saves residents $2,614-$3,955/year at $100K income compared to neighboring states with income tax. Compared to California, savings are $4,911/year at $100K, $9,561/year at $150K, and about $18,861/year at $250K.
But consider property taxes:
Bottom line: Texas is most advantageous for high-income renters or those buying modestly-priced homes. Property owners in expensive homes see smaller net savings.
No, Texas has no state income tax. This policy is constitutionally protected since 2019 (Art. VIII, Sec. 24-a) - the legislature may not impose a tax on the net incomes of individuals. Residents pay only federal income tax (10-37% based on income). Texas is one of only 9 US states with no income tax.
Texas generates revenue through property tax (1.40% average owner-occupied effective rate, sales tax (6.25% state + up to 2% local), oil and gas severance taxes, business franchise tax (0.375-0.75% of margin), and federal funding. This diversified model has worked since statehood in 1845.
At $100K income: save $4,911/year in state income tax vs California. At $150K: save $9,561/year. At $250K: save $18,861/year. However, Texas property tax is higher (1.40% vs 0.70%), so homeowners with expensive properties see smaller net savings. Renters and high earners benefit most from Texas's no-income-tax policy.
Texas property tax averages 1.40% of home value annually (owner-occupied effective rate, Tax Foundation), among the higher rates in the US. On a $400K home, that's $5,600/year. California averages 0.70% ($2,800/year on same home). Note this 1.40% reflects Texas's large homestead exemption for owner-occupants — a landlord's rental property, which doesn't qualify for that exemption, pays a much higher true rate of approximately 2.5%. Texas relies heavily on property tax to fund schools and local services since it has no income tax. Rates vary by county (Houston area ~2.5%, Austin ~2.1%).
Move if: you're a high earner ($150K+), rent or buy modestly-priced homes, work remotely or in tech/energy, and value low taxes over California's weather/culture. Stay where you are if: you own an expensive home (property tax will eat into savings), prefer public lands/outdoor recreation (98% of Texas is private), can't handle 100°F+ summers, or your industry is based elsewhere.
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How we calculate: Since Texas has no state income tax, our calculator shows only federal income tax using official 2026 IRS tax brackets. We apply marginal tax rates correctly, subtract the standard deduction ($16,100 for single filers in 2026), and calculate effective tax rates. For comparison purposes, we show property tax averages and sales tax rates.
Data sources:
Verification: Texas constitutional prohibition of income tax verified against Texas Constitution Article VIII, Section 24-a (added 2019). Property tax averages calculated from Texas Comptroller's Property Tax Assistance Division data as of March 17, 2026. Federal tax calculator accuracy: 99%+ for standard W-2 filers.
Limitations: Assumes single filer, standard deduction, W-2 income only. Does not include: itemized deductions, federal tax credits (EITC, child tax credit), self-employment tax, business franchise tax implications. Property tax rates shown are statewide averages; actual rates vary significantly by county (range: 0.7% to 2.5%).
For complex situations: Consult a licensed CPA familiar with Texas tax law, or use official IRS tax software for federal calculations.
Last Updated: May 2026
Verified By: Daniel · CountryTaxCalc
Contact: For corrections or questions, visit our contact page.
Last Updated: May 2026